Massive Support Package for Small Businesses and Youth
South Korea’s four largest commercial banks — KB Kookmin, Shinhan, Hana, and Woori — collectively committed ₩1.3 trillion (approximately £740 million) in the first half of 2024 to support small businesses and young people through a range of public interest financial programmes. Woori Bank notably exceeded its original target, allocating even more funds than initially planned.
According to financial industry sources on 31 July, the public interest finance programmes have been in operation since February 2023 and have continued into the first half of this year. These initiatives are designed to alleviate financial burdens amid ongoing economic uncertainty.
KB Kookmin Bank: Leading the Sector with Cashbacks and Legal Aid
KB Kookmin Bank has deployed the largest amount among the four, with ₩372.1 billion committed to support programmes. Its flagship initiative, a cashback scheme for refinancing loans backed by regional credit guarantee foundations, reimburses borrowers with the equivalent of a 2-percentage-point reduction in interest — provided payments are made on time for a year. This programme, totalling ₩10 billion, has already benefited over 20,000 small business owners.
Kookmin Bank also runs a variety of independent schemes, including the KB Small Business Support Project and partnerships to foster entrepreneurial ventures. Furthermore, it provides pro bono legal assistance to those in bankruptcy or personal rehabilitation, and offers meals and financial assistance to students and young people preparing for self-reliance.
Shinhan Bank: Near-Full Target Achievement and New Initiatives
Shinhan Bank disbursed ₩302.9 billion in the first half of 2024, achieving 98.7% of its planned target of ₩306.7 billion. Through joint programmes, it provided ₩195.3 billion in cashback support to approximately 280,000 small business clients. A further ₩107.6 billion was directed to nearly 277,000 vulnerable individuals through independent schemes.
In response to ongoing economic pressures, Shinhan introduced ₩3.6 billion worth of new programmes in 2024. These include maternity support grants for women entrepreneurs, subsidies for safety personnel in struggling SMEs, and benefits for members of the Yellow Umbrella Mutual Aid system. Additionally, Shinhan launched the “Help-Up & Value-Up” project to lower customer borrowing costs — reducing rates on high-interest personal loans to 9.8% and cutting interest by one percentage point for new “Hope Plus” loans.
Hana Bank: Full Execution of ₩355.7 Billion Pledged, Focus on Inclusivity
Hana Bank fully executed its ₩355.7 billion public interest financial support plan during the first half of 2024, exceeding expectations in some key areas. A total of ₩200.2 billion was disbursed through the shared cashback programme for self-employed borrowers, surpassing the original target of ₩199.4 billion.
Its independent initiatives included ₩61.2 billion contributed to the Korea Inclusive Finance Agency and ₩19.4 billion to regional credit guarantee foundations to revitalise local economies. Additionally, ₩16.8 billion was used to cover guarantee fees through Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and Korea Trade Insurance Corporation.
To ease operational costs for small businesses, Hana Bank offered ₩30 billion in energy bill support and ₩10 billion for equipment upgrades and digital transitions. It also covered monthly franchise reporting fees, card payment device costs, and tailored consulting fees.
Hana Bank further supported financially vulnerable groups including young people and responsible borrowers in credit recovery. Collaborating with the Korea Student Aid Foundation, it launched the “Blue Lighthouse” credit rehabilitation project. It also issued credit cards to successful repayment clients, helped young startups with office rental costs, and assisted e-commerce companies through factoring services.
Hana Bank President Lee Ho-seong emphasised the institution’s ongoing commitment to inclusive finance, stating, “We are determined to provide meaningful financial support for the underprivileged, helping to foster sustainable growth across society.”
The bank also operates a dedicated small business support brand, “HANA THE SOHO”, offering specialised products and services throughout the entrepreneurial lifecycle — from launch and growth to closure — with tailored market analysis, financial guidance, and management consulting.
Woori Bank: Exceeds Goal with ₩282 Billion in Support
Woori Bank provided ₩282 billion in public interest financing, exceeding its original target of ₩275.8 billion. Through joint programmes, ₩183.6 billion was disbursed in cashback payments to over 210,000 self-employed individuals struggling with high interest rates and inflation.
Its independent contributions totalling ₩98.4 billion targeted vulnerable groups, including support for student loan repayments, maternity insurance premiums, birth grants, and youth transport subsidies. Woori Bank also actively participated in sector-wide debt adjustment schemes such as “Small Business 119 Plus” and “Sunshine Loan 119”.
Sector-Wide Impact and Ongoing Commitment
According to the Korea Federation of Banks, a total of ₩591.8 billion has been distributed by banks since February 2023, representing 96% of the overall sector target of ₩615.6 billion. A representative from the federation confirmed that an additional ₩39 billion will be allocated through the remainder of the year, aiming to successfully complete the sector’s ₩2.1 trillion public interest finance initiative.
This large-scale mobilisation underscores the financial sector’s growing role in supporting society’s most vulnerable groups during prolonged economic challenges.